In a landmark episode of iGaming Daily, Antony Gevisser, Senior Vice President Legal and Regulatory Affairs at Super Group and a member of the IMGL, underlined that the growth of the black market has been enabled by regulatory failure.
Quizzed by podcast host Ted Menmuir, Gevisser went on to emphasise the importance of governments, politicians, regulators and enforcement agencies stepping up and taking more notice of the threat of the illicit market.
Responsible regulation in particular is needed to combat the growth of the black market, Gevisser said. He then took aim at regulators “creating issues within their own regimes, which would lead to less competitiveness, less market entry by the right players and therefore a bigger availability of space for these black marketers.”
The current state of play around the black market is worrisome for the industry. However, Gevisser warned that the industry has reached this point “organically over time”.
“As certain countries started to regulate there was always going to be a black market”, he continued.
“Then when countries become regulated if they do it ineffectively, which there are lots of examples of, what you’re essentially doing is you’re not channeling your demographic into a regulated space and that demographic is going offshore for a variety of different reasons.”
In a climate where the transition from the grey to the black market is becoming prevalent, Gevisser warned that the two are often conflated – adding that the importance of distinguishing between the two is vital.
Defining the differences, he stated: “A black market is an illegal criminal market It’s where there is a legitimate lawful, viable and acceptable regulatory regime in a country in terms of which they offer authorizations or permits or licenses and it’s quite clear that you do not have a defensible position without one of those licenses.
“A gray market is nuanced and there’s a lot of shades of gray and. Essentially what lies at the base of a gray market is a defensible legal position to be there, and that is very nuanced depending on country to country.
“It relies on expert local legal advice that you can offer your products, and an important facet of the gray market is that it’s licensed from a responsible regulator somewhere even if not by a regulator in that country which may or may not even exist in that country.”
Determining the size of the black market is a mission that is simply impossible according to Gevisser, as people and stakeholders need to appreciate gathering accurate numbers are unattainable.
He revealed that the black market is being introduced to players via avenues that they are yet to use or master, including crypto, social networks and AI. According to Gevisser the emphasis has to be on stopping players going to the black market, rather than winning them back, as once a player ventures to the black market they rarely return.
To listen to the full episode, click on the link below.
